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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0496
Introduced 2/16/2005, by Sen. Gary G. Dahl SYNOPSIS AS INTRODUCED:
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Amends the Illinois Income Tax Act. For taxable years ending on or
after December 31, 2005 and ending on or before December
30, 2010, allows small businesses to claim a tax credit in an amount equal to
the amount of expenditures for health care insurance for its employees made in
the year for which the
credit is claimed. Provides that the credit may not reduce a taxpayer's
liability to less than zero. Provides that the excess credit may be carried
forward for a period of 5 years. Requires the taxpayer to keep any records
required by the Department of Revenue regarding the health care expenditures
for which the credit is claimed. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB0496 |
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LRB094 10805 BDD 41284 b |
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| AN ACT in relation to taxation.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by adding |
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| Section 216 as
follows:
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| (35 ILCS 5/216 new)
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| Sec. 216. Health care tax credit. |
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| (a) For taxable years ending on or after December 31, 2005 |
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| and
ending on or before December 30, 2010, each taxpayer that |
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| is a small
business is entitled to a credit against the tax |
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| imposed by subsections (a)
and (b) of Section 201 in an amount |
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| equal to the amount of expenditures for
health care insurance |
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| for its employees made by the taxpayer in the tax year
for |
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| which the credit is claimed.
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| (b) For the purposes of this Section, "small business" |
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| means any
corporation, partnership, proprietorship, or other |
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| business entity with 25 or
fewer employees.
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| (c) In no event shall a credit under this Section reduce |
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| the taxpayer's
liability to less than zero. If the amount of |
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| the credit exceeds the tax
liability for the year, the excess |
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| may be carried forward and applied to the
tax liability of the |
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| 5 taxable years following the excess credit. The credit
shall |
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| be applied to the earliest year for which there is a tax |
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| liability. If
there are credits from more than one tax year |
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| that are available to offset a
liability, the earlier credit |
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| shall be applied first.
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| (d) A taxpayer claiming the credit provided by this Section |
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| shall maintain
and record any information that the Department |
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| may require, by rule, regarding
the health care insurance |
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| expenditures for which the credit is claimed.
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law. |